Arnstein & Lehr LLP partners Phillip M. Hudson III, Hilda Piloto negotiate resolution to $100M real estate dispute

MIAMI, FL – Phillip M. Hudson, III (top left photo)  and Hilda Piloto (top right photo)  partners with Arnstein & Lehr LLP recently negotiated the resolution of a $100 million dispute between developers South Florida Federal Partners and related entities (SFFP), its lender Dexia Real Estate Capital Market and its general contractor, Moss & Associates.

The confidential agreement involves four South Florida buildings now occupied by the U.S. Citizenship and Immigration Services, pursuant to long-term leases. The Properties are being sold to an unrelated third party which sale will consummate the settlement process.

“Given the size of the project, the large sums involved, and the number of subcontractor claims this was not an easy matter to settle,” said Hudson, head of the firm’s commercial and bankruptcy department in Miami, “We successfully resolved what could have been protracted and costly litigation for all parties.” There were five pending lawsuits settled pursuant to the agreement.

SFFP, whose principals include James M. Beeson Jr., Mark Levin and Darius W. Gaskins Jr., signed the federal agency to a long-term lease prior to beginning construction. However, the projected $80 million project experienced funding problems yet SFFP and Moss worked together to finish the buildings in 2009. Total cost exceeded $100 million.

“Challenges arose even with full occupancy of the buildings,” said Hudson, who has handled sophisticated workout transactions for over 25 years. “The developers needed alternate financing as the buildings neared completion, but the capital markets had dried up due to the banking crisis and downturn in the economy.”

Construction delays and disputes over loan payments and fees complicated matters further and escalated costs, but the developers and Moss worked together to complete project.

“After Dexia and Moss filed their respective lawsuits, I sat down with the various parties and worked through each issue,” said Hudson. “We discussed what each side wanted and what was realistic. In a matter of months, we came to a viable agreement. The good news is that everyone is getting paid a substantial amount of their claim – the lender, the general contractor and sub contractors,” he said.

Contact:
 Don Silver, Boardroom Communications, donsil@boardroompr.com, (954) 370-8999,  (954) 629-7523
Lauren Simo, (954) 370-8999 , (954) 370-8892 Fax , lsimo@boardroompr.com